Income Taxes (Tables)

12 Months Ended

Jan. 03, 2015

Income Tax Disclosure [Abstract]

Income tax expense (benefit)

Income tax expense consisted of the following (in thousands):

Current:	2014			2013		2012
Federal	$	29,484		$	25,091	$	34,993
State	4,161			3,802		3,419
	33,645			28,893		38,412
Deferred:
Federal	747			1,953		2,176
State	(258		)	84		1,323
	489			2,037		3,499
Income tax expense	$	34,134		$	30,930	$	41,911

Reconciliation of income tax expense (benefit) at the statutory federal rate

The following table provides a reconciliation between the statutory federal income tax rate and our effective income tax rate:

	2014		2013		2012
Statutory federal income tax	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	2.5		3.0		2.9
Manufacturing deduction	(3.3	)	(3.2	)	(3.1	)
Changes in unrecognized tax benefits	0.3		0.3		(0.2	)
Other	(1.1	)	(1.1	)	0.3
Effective income tax rate	33.4	%	34.0	%	34.9	%

Deferred income taxes

The tax effects of temporary differences that give rise to deferred income taxes were as follows (in thousands):

Deferred tax assets:	2014			2013
Current:
Warranty and returns liabilities	$	5,753		$	4,376
Compensation and benefits	1,545			1,379
Deferred rent and lease incentives	991			857
Other	709			539
Long-term:
Stock-based compensation	6,843			5,944
Deferred rent and lease incentives	5,527			4,524
Warranty liabilities	1,051			605
Net operating loss and capital loss carryforwards	649			827
Other	—			1,111
Total gross deferred tax assets	23,068			20,162
Valuation allowance	(552		)	(587		)
Total deferred tax assets after valuation allowance	22,516			19,575
Deferred tax liabilities:
Long-term:
Property and equipment	9,873			7,696
Other	424			—
Total gross deferred tax liabilities	10,297			7,696
Net deferred tax assets	$	12,219		$	11,879